INTRODUCTION TO MARKETING

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INTRODUCTION TO MARKETING

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Title: INTRODUCTION TO MARKETING

1
INTRODUCTION TO MARKETING
Introduction to Business Marketing
2
ASSIGNMENT

Read Chapter 13, Pages 214 227
Read Complete the Crossword Puzzle Provided
On the Puzzle sheet, answer any one Critical
Thinking question from the text. Use complete
sentences. Summarize the question in the first
sentence.

3
OBJECTIVE

Be Able to Define Marketing

4
Define Marketing

All of the business activities involved with
moving goods services from producers to
consumers

5
OBJECTIVE

Be Able to Identify Describe the Marketing
Concept

6
The Goals of Marketing

To satisfy the
wants needs
of our customers
To make Money !!

7
The Marketing ConceptA Business Philosophy

If a business is to be successful - make money -
if must satisfy the wants needs of the consumer

8
OBJECTIVE

Be Able to Identify Describe the Four Ps of
Marketing

9
The Four Ps of Marketing

Product Planning
Pricing
Promotion
Physical Distribution

10
The Four Ps of Marketing

Product Planning
Pricing
Promotion
Physical Distribution

11
Product Planning

Any Business Activity That Helps to Design a New
Product or Change the Characteristics of an Old
Product

12
PRODUCT PLANNING

Important Concept
FEATURES - Facts about your product, physical
description (size, color, material used, etc)
BENEFITS - What the product can do for you!!!

13
The Four Ps of Marketing

Product Planning
Pricing
Promotion
Physical Distribution

14
Pricing

Any Activity Used to Assign a Value to a Product
or Service

15
The Four Ps of Marketing

Product Planning
Pricing
Promotion
Physical Distribution

16
Promotion

Any Activity Designed to Let the Customers Know
About a Product or Service
Personal Selling
Advertising
Publicity
Public Relations
Visual Merchandising
Sales Promotion

17
The Four Ps of Marketing

Product Planning
Pricing
Promotion
Physical Distribution

18
Physical Distribution

Involves the Actual Movement of Merchandise as it
Moves From the Producer to Consumer

19
OBJECTIVE

Be Able to Match the Seven Marketing Activities
With Their Definition or Examples

20
Seven Marketing Functions

Market Information Management
Financing
Pricing

Promotion
Distribution
Selling
Product/Service Management

21
Distribution

The process of getting goods services to
customers. This includes purchasing, stock
handling, inventory control, physical
distribution gt(transportation warehousing).

22
Financing

Financing is getting the money that is necessary
for setting up running a business. Finance
also includes protecting investments through risk
management.

23
Marketing Information Management (MIS)

An effective MIS gathers and analyzes information
about customers, trends, competitors products.

24
Pricing

Determining the amounts a customer will be
charged for a good or service so that a business
can earn a profit

25
Product/Service Management

Obtaining, developing, maintaining, improving a
product or product mix in response to market
opportunities

26
Promotion

Promotion is any effort to inform, persuade, or
remind potential customers about a businesss
products or services

27
Selling

Personally matching customers wants needs with
products services available for sale.
(An important associated concept is Relationship
Marketing.)

28
Seven Marketing Functions

Market Information Management
Financing
Pricing

Promotion
Distribution
Selling
Product/Service Management

29
OBJECTIVE

Be Able to Identify Each Member of the Primary
Channel of Distribution
Describe Their Roles

30
The Primary Channel of Distribution
Producer
Wholesaler
Retailer
Consumer
31
The Primary Channel of Distribution

Primarily Makes Products to Sell
But Also Must
Buy Sell
Finance
Store Transport
Insure
Etc. Etc. Etc.

Producer
32
The Primary Channel of Distribution

Breaks Down Bulk Quantities Into Smaller Lots
But Also Must
Buy Sell
Buy Real Estate
Store
Do Market Research
Etc. Etc. Etc.

Wholesaler
33
The Primary Channel of Distribution

Primarily Sells to the Consumer
But Also Must
Display
Advertise
Make a Profit
Package Goods
Provide Services
Etc. Etc. Etc.

Retailer
34
The Primary Channel of Distribution

Most Importantly, Buys Our Products Services
But Also
Provides Market Research Information
Uses Our Products Services Up Buys Again

Consumer
35
The Primary Channel of Distribution
Chemicals
Sugar
Producer
Cocoa
Milk
36
The Primary Channel of Distribution
Producer
Wholesaler
Retailer
Consumer
37
OBJECTIVE

Be able to describe, in an essay, how marketing
activities benefit our society

38
How Marketing Activities Benefit Our Society

Raises the Standard of Living
Adds Value to What We Buy
Form Utility
Place Utility
Time Utility
Possession Utility
Information Utility

39
How Marketing Activities Benefit Our Society

Makes Shopping More Convenient
Keeps Prices Reasonable
Helps Society to Keep Up With Change
Provides Public Service Activities

40
Marketing Trivia

1/4 to 1/3 of all Jobs are Marketing Related
.50 of Every Dollar Goes to Cover the Cost of
Marketing Activities
Marketing Creates Jobs Which Allows Consumers to
Have More Money to Spend on Items That Will
Improve Their Standard of Living

41
PRODUCT PLANNINGPROCESS
42
OBJECTIVE

Be able to outline the product planning process
and identify the associated terms

43
FEATURE/BENEFIT ANALYSIS
44
FEATURES

Facts About the Product
Size, Color, Materials, Warranties, Construction
Methods, Manufacturer, Etc.

45
Benefits Buying Motives

Buying Motives
What a product does for you
The reasons why people buy products or services

46
BENEFITS

Will it make you rich?
Will it make you successful?
Will it make you happy?
Will it relax you?
Will it make you healthier?
Will it make you attractive?
Etc. etc. etc.

47
BUYING MOTIVESActivity

If you were to design a new car, what buying
motives would you appeal to?
Safety?
Excitement?
Cost Savings?
Comfort?
Other

48
BUYING MOTIVESActivity

What features would you have on your new car?
Safety
Excitement
Cost Savings
Comfort
Other?

49
BUYING MOTIVESAssignment With a Partner

If you were to design a new ____, what buying
motives would you appeal to?
______________?
______________?
______________?
______________?

50
BUYING MOTIVES Assignment With a Partner

What features will you have on your new _____?
____________
____________
____________
____________
____________

51
Other Important Marketing Concepts

Market Segmentation
Demographics
Family Life Cycle
Trends in Demographics
Target Marketing

52
OBJECTIVE

Be Able to Define Market Segmentation

53
OBJECTIVE

Be Able to Define
Target Marketing

54
OBJECTIVE

Be Able to Define Demographics

55
Common Demographics

Age
Sex
Occupation
Religion
Interests
Income
Family Size

Geographic Location
Attitudes
Educational Background
Race
Ethnic Background
Wealth
Etc.

56
DEMOGRAPHIC TRENDS

??? ??? ??? ??? ???

57
DEMOGRAPHIC TRENDS

Age
Incomes
Geographic Location
Family Size
???

58
Family Life Cycle

Stages
Early Childhood
Teen
Young Adult/Single
Married w/out Children Dinks
Married w/ Children
Maturity
Empty Nest
Sole Survivor

59
Product Planning Process

1.) Select general type of
product
2.) Specify the product mix
3.) Develop packaging
labeling
4.) Identify features
benefits

60
1.) Select General Type of Product(OUTLINE)

I.) Consumer Goods
A.) Types
B.) How to Market
II.) Consumer Services
A.) Types
B.) How to Market

61
Select General Type of ProductOUTLINE

III.) Industrial Goods
A.) Types
B.) How to Market
IV.) Industrial Services
A.) Types
B.) How to Market

62
1.) Select General Type of ProductOUTLINE

I.) Consumer Goods - Products used for
personal, family, or household purposes
A.) Convenience - _________________
B.) Shopping - _________________
C.) Specialty - _________________

63
Select General Type of ProductOUTLINE

I.) Consumer Goods
A.) Convenience Goods - Inexpensive products
purchased regularly, little effort spent on
decision. Many grocery items fall into this
group. Customer will substitute.

64
1.) Types of Convenience Goods Staples -
Basic food items used often (ex.
Bread) Impulse - Unplanned purchases
(ex. Candy) Emergency - Items
purchased because of immediate need (ex.
Batteries)
65
Select General Type of ProductOUTLINE

2.) Keys to Selling Convenience Goods
a.) have convenient locations
b.) have extended hours
c.) layout is conducive to self-service
d.) have a wide variety of merchandise
e.) heavy use of print/broadcast media
displays

66
Think Seven Eleven!!!
LOCATION!
HOURS!
7/11
VARIETY!
ADVERTISING!
Help Wanted
SELF-SERVICE!
67
1.) Select General Type of ProductOUTLINE

I.) Consumer Goods - Products used for
personal, family, or household purposes
A.) Convenience - _______________
B.) Shopping - _________________
C.) Specialty - _________________

68
1.) Select General Type of ProductOUTLINE

I.) Consumer Goods
B.) Shopping Goods - Purchases made by a
consumer after a great deal of searching
comparison (ex. furniture)

69
1.) Types of Shopping Goods a.) higher
priced merchandise b.) risky purchases (if
something isnt just right) c.) the consumer
has time to make a decision
70
1.) Select General Type of ProductOUTLINE

2.) Keys to selling shopping goods
a.) quality design, development,
manufacturing
b.) knowledgeable/well trained
salespeople
c.) extensive brand advertising

71
1.) Select General Type of ProductOUTLINE

2.) Keys to selling shopping goods (cont.)
d.) warranties/services after purchase are
important
e.) special promotions POP displays are
helpful

72
1.) Select General Type of ProductOUTLINE

I.) Consumer Goods - Products used for
personal, family, or household purposes
A.) Convenience - _______________
B.) Shopping - _________________
C.) Specialty - _________________

73
1.) Select General Type of ProductOUTLINE

I.) Consumer Goods
C.) Specialty Goods - goods purchased by
customers who desire a particular product and/or
brand and will accept no substitutes.
(ex.Cadilac, Rolex, Levi Jeans, Skippy peanut
butter)

74
1.) Select General Type of ProductOUTLINE

I.) Consumer Goods
C.) Specialty Goods
1.) Keys to Selling Specialty Goods
a.) Keeping Product Available
(Product is Pre-sold)

75
1.) Select General Type of ProductOUTLINE

II.) Consumer Services - Things done for people
to help them in their daily lives
A.) Rented Goods Services - _____________
B.) Owned Goods Services - _____________
C.) Non Goods Services - _____________

76
1.) Select General Type of ProductOUTLINE

II.) Consumer Services
A.) Rented Goods Services - provides a product
that the customer rents uses. (ex. cars,
videos)
B.) Owned Goods Service - one that alters or
improves on a good owned by the customer (car
wash, shoe shine)
C.) Non Goods Service - provides personal
professional services to customers for a fee.
(tax prep., bridal)

77
1.) Select General Type of ProductOUTLINE

II.) Consumer Services
A.), B.), C.) Rented, Owned, Non-goods
Services
1.) Keys to selling
a.) high quality standards
b.) flexible pricing
c.) effective personal selling
d.) promotion through word-of-mouth testimonial
e.) Image is everything encourages repeat
sales

78
1.) Select General Type of ProductOUTLINE

III.) Industrial Goods - items purchased for
the production of other goods
A.) Installations Accessory Equipment
B.) Raw Materials, Components, Fabricated
Parts
C.) Industrial Supplies

79
1.) Select General Type of ProductOUTLINE

III.) Industrial Goods
A.) Installations Accessory Equipment - Items
that are part of the production process, not the
product. (Examples include drill presses,
computers, etc.)

80
1.) Select General Type of ProductOUTLINE

III.) Industrial Goods
B.) Raw Materials, Components,
Fabricated Parts
Items consumed in the production
process or items used in the new
product(ex. Include oil, flour, etc.)

81
1.) Select General Type of ProductOUTLINE

III.) Industrial Goods
C.) Industrial Supplies - Items that
support/facilitate the use of a businesss
equipment. (ex. Include computer paper, paint,
cleaning products).

82
1.) Keys to Selling a.) Hire train a
knowledgeable workforce b.) Emphasize
products durability dependability c.)
Plan for customer follow-up maintenance
83
1.) Select General Type of ProductOUTLINE

III.) Industrial Services - Things done for
businesss to help them keep their business
running smoothly
A.) Maintenance Repair - general cleaning,
repair, painting, decorating
B.) Business Advisory - includes management
consulting, engineering, legal, or
accounting
assistance.

84
1.) Select General Type of ProductOUTLINE

III.) Industrial Services -
1.) Keys to Selling(Same as Consumer Services)
a.) high quality standards
b.) flexible pricing
c.) effective personal selling
d.) promotion through testimonial
e.) Image is everything encourages
repeat sales

85
2.) Specify the Product MixOUTLINE

I.) Product Mix Terms
A.) Product Items Lines
B.) Product Width Depth
II.) Product Mix Strategies
A.) Types of Strategies
1.) Expand/Modify Product Current Lines/Items
2.) Developing New Products
III.) Product Life Cycle
A.) Managing a Product Throughout its Stages

86
2.) Specify the Product MixOUTLINE

I.) Product Mix - All the different products
that a
company makes. All Ford Products, for
example,
or all items manufactured by Harley/Davidson
A.) Product Items Lines
B.) Product Width Depth

87
2.) Specify the Product MixOUTLINE

I.) Product Mix
A.) Product Items Lines
1.) Product Lines are groups of closely related
products.
For example, all cars produced by Ford
2.) A Product Item is a specific brand, model,
or size of a product. The Ford Mustang for
example
B.) Product Width Depth

88
2.) Specify the Product MixOUTLINE

I.) Product Mix
A.) Product Items Lines
B.) Product Width Depth
1.) Product Width refers to the number of
different product lines a store carries or
manufacturer produces. Ford offers
several
different product lines - trucks, cars,
vans,
buses, military vehicles, construction
equipment, etc.

89
2.) Specify the Product MixOUTLINE

I.) Product Mix
A.) Product Items Lines
B.) Product Width Depth
1.) Product Width
2.) Product Depth refers to the number of
product items offered within each product
line. Ford Mustang, for example, offers
convertibles, LX models, standard vs.
automatic transmissions, different size
engines.

90
2.) Specify the Product MixOUTLINE

II.) Product Mix Strategies - deciding which
products
a company will carry or make.
A.) Expand or Modify Existing Product Lines or
Items
B.) Develop New Products

91
2.) Specify the Product MixOUTLINE

II.) Product Mix Strategies - deciding which
products
a company will carry or make.
A.) Expand or Modify Existing Product Lines or
Items Ford could, for example, add-solar
powered Mustangs to their product items

92
2.) Specify the Product MixOUTLINE

II.) Product Mix Stategies
A.) Expand or Modify Existing Product Lines or
Items
B.) Develop New Products - means coming out
with totally new products to increase market
share. Could you, for example, imagine Ford
motor boats or blaze orange Valley tees?
(Any Current
examples?!)

93
2.) Specify the Product MixOUTLINE

II.) Product Mix Strategies
B.) Develop New Products
1.) Product Development Process
a.) Generating ideas
b.) Screening ideas
c.) Developing the product
d.) Testing the product
e.) Introducing the Product
f.) Evaluating customer acceptance

94
2.) Specify the Product MixOUTLINE

II.) B.) Develop New Products
1.) Product Development Process
a.) Generating Ideas - Use a variety of sources
-
customers, employees, competition,
suppliers.
b.) Screening Ideas - consider size of the
market,
profit potential, level of risk
c.) Developing the Product - develop
prototypes,
marketing strategies, plans for
packaging,
labeling, branding, distribution

95
2.) Specify the Product MixOUTLINE

d.) Testing the Product - tested in labs w/
customers. Test marketing is done in
specific
geographic areas
e.) Introducing the Product - The cost to
intro-
duce is very high the chance for success
low. Conduct a promotional campaign
train salespeople.
f.) Evaluate Customer Acceptance - Conduct
market sales research. Do a customer
opinion survey.

96
2.) Specify the Product MixOUTLINE

II.) Product Mix Strategies
B.) Develop New Products
(ACTIVITY)
1.) Form Four Groups
2.) Group A Generates Five Product Ideas
3.) Group B Narrows the Choices to Two
4.) Group C Designs or Draws Both Products
5.) Group D Picks the Winning Product

97
2.) Specify the Product Mix OUTLINE

III.) Managing a Product in its Product Life
Cycle
A.) Defined - Just as the economy moves
through stages, so do product sales. At
different stages, try different marketing
strategies.
B.) Stages
1.) Introduction
2.) Growth
3.) Maturity
4.) Decline

98
Product Life Cycle
Sales
Profits
Introduction Growth Maturity Decline
99
2.) Specify the Product Mix OUTLINE

III.) Managing a Product Throughout its Product
Life Cycle
A.) Defined
B.) Stages
1.) Introduction - The product is new
a.) Goal is to draw customers attention
to increase product awareness
b.) Techniques include heavy promotion -
ads, publicity, displays, sales
promotion, etc.

100
2.) Specify the Product Mix

III.) Managing a Product Throughout its Product
Life Cycle
B.) Stages
2.) Growth
a.) The product begins to enjoy success
sales
profits go up. Target Market is aware
of product.
b.) Techniques used to market during this
stage include ads that focus on customer
satisfaction, meeting the competition,
expand or modify the product line

101
2.) Specify the Product Mix OUTLINE

III.) Managing a Product Throughout its Product
Life Cycle
B.) Stages
3.) Maturity
a.) Sales level off/slow down, competition
is heavy, the market might be
saturated.
b.) Ads focus on beating the competition,
think about dropping or improving the
item

102
2.) Specify the Product Mix OUTLINE

III.) Managing a Product Throughout its Product
Life Cycle
B.) Stages
4.) Decline
a.) Sales are falling, profits are low
or
nonexistent
b.) Management must decide to drop or
to
- sell, discount, or license the product
- find a new use for the product
- regionalize the product
- modernize or alter the product

103
Product Life Cycle
Sales
Profits
Introduction Growth Maturity Decline
104
3.) Develop Packaging LabelingOUTLINE

I.) Branding
A.) Defined
B.) Types of Brands
C.) Branding Strategies
II.) Packaging
A.) Functions of Packaging
III.) Labeling
A.) Types

105
3.) Develop Packaging LabelingOUTLINE

I.) Branding
A.) Defined - A name, design, or symbol
that identifies the products of a company.
For
example, Coke products, Levi Jeans, Nike, etc.
1.) Related Terms include

106
3.) Develop Packaging LabelingOUTLINE

1.) Related Terms include
a.) Brand Name - words that can be spoken
b.) Brand Mark - a symbol, font, design, or
color
c.) Trade Name - words that identify the
company
d.) Trade Character - brand mark given human
form
e.) Trademark - a brand name, mark, character
or combination of these protected by law

107
3.) Develop Packaging Labeling

Provide an example for each
a.) Brand Name - Levis, Nike, Tylenol, etc.
b.) Brand Mark - P. O. Eagle, Disneys Castle,
etc.
c.) Trade Name - Kellogg's, Chevrolet, Xerox,
etc.
d.) Trade Character - Pillsbury Dough Boy,
Birds
Eyes Jolly Green Giant, etc.
e.) Trademark - Frito Lays Doritos, Kellogg's
Rice
Krispies Treats, Nikes Swoosh, VISA,
etc.

108
3.) Develop Packaging LabelingACTIVITY

Provide an example for each
a.) Brand Name -
b.) Brand Mark -
c.) Trade Name -
d.) Trade Character -
e.) Trademark -

109
3.) Develop Packaging LabelingOUTLINE
I.) Branding A.) Defined B.) Types of
Brands 1.) National - called manufacturer
brands, are owned by manufacturers. 2.)
Private - owned by wholesalers
retailers 3.) Generic - no frills products
that dont carry a brand name
110
3.) Develop Packaging LabelingOUTLINE
I.) Branding A.) Defined B.) Types of
Brands C.) Brand Strategies 1.) Brand
Extension - Improving an existing brand
name (ex adding flavors to Fig Newtons) 2.)
Brand Licensing - allowing another company
to use your to use its name, marks,
characters for a fee. (ex. Caterpillar lets over
700 companies use its name)
111
3.) Develop Packaging LabelingOUTLINE
I.) Branding A.) Defined B.) Types of
Brands C.) Brand Strategies (cont.) 3.)
Co-branding - Two companies combining to
form another product. (Ex. The GM Card) is
a Master Card offered by General Motors 4.)
Mixed Brands - Offering a combination of
national, private, generic products (ex. Any
grocery store)
112
3.) Develop Packaging LabelingOUTLINE

II.) Packaging
A.) Functions of Packaging
1.) Promoting Selling the Product -
a.) Displays the brand name
b.) Attractive, colorful artistic
c.) Makes it easy to use
2.) Defining Product Identify
a.) Unique packages sell the product
(Leggs)

113
3.) Develop Packaging LabelingOUTLINE

II.) Packaging
A.) Functions of Packaging (cont.)
3.) Providing Information
a.) Directions
b.) Ingredients
c.) Nutritional Value
d.) Hazards
e.) Prices
f.) Inventory Control

114
3.) Develop Packaging LabelingOUTLINE

II.) Packaging
A.) Functions of Packaging (cont.)
4.) Meeting Customer Needs
a.) Various Sizes (Family Size/Singles)
b.) Practical Needs (Microwaveable)
5.) Ensuring Safe Use
a.) Plastic vs. glass
b.) Tamper-proof lids
c.) Child-proof containers

115
3.) Develop Packaging LabelingOUTLINE

II.) Packaging
A.) Functions of Packaging (cont.)
6.) Protecting the product from
a.) breaking during shipping
b.) from spoilage
c.) excessive costs (rectangles save money)
B.) Types
a.) cardboard, glass, metal, plastic,
wood, wraps, etc.

116
3.) Develop Packaging LabelingOUTLINE

III.) Labeling - a information tag, wrapper,
seal, or imprinted message

117
4.) Identify Features BenefitsOUTLINE

I.) Extended Product Features
A.) Types
1.) Warranties Guarantees
2.) Others
II.) Consumer Laws Agencies
A.) Federal State
B.) Consumer Rights Responsibilities
III.) Credit
A.) Types

118
4.) Identify Features BenefitsOUTLINE

I.) Extended Product Features
A.) Types
1.) Warranties Guarantees Defined
a.) Warranty - a promise that a product
will meet certain standards or it
will be fixed.
b.) Guarantee - is a warranty that offers a
money back clause if not completely
satisfied.

119
4.) Identify Features BenefitsOUTLINE

I.) Extended Product Features
A.) Types
1.) Warranties Guarantees Defined
a.) Express Warranty - stated in writing
or spoken
i.) Full - Repaired or replaced
ii.) Limited - certain provisions are
excluded

120
4.) Identify Features BenefitsOUTLINE

I.) Extended Product Features
A.) Types
1.) Warranties Guarantees Defined
a.) Express Warranty
b.) Implied - not clearly indicated,
offers assurance that the product
will work the way it is supposed to
work

121
4.) Identify Features BenefitsOUTLINE

I.) Extended Product Features
A.) Types
1.) Warranties Guarantees Defined
a.) Express Warranty
b.) Implied
c.) Disclaimers - limits company liability.
For example, to the cost of the product,
not the damage done by the product

122
4.) Identify Features BenefitsOUTLINE

I.) Extended Product Features
A.) Types
2.) Others
a.) delivery
b.) installation
c.) service after the sale
d.) directions training
e.) billing
f.) credit

123
4.) Identify Features BenefitsOUTLINE

I.) Extended Product Features
A.) Types
2.) Others
f.) credit
i.) Bank Credit Cards
ii.) Retail Credit Cards
iii.) Debit Cards
iv.) Secured Loans
v.) Unsecured Loans

124
4.) Identify Features BenefitsOUTLINE

II.) Consumer Laws Agencies
A.) Federal State
1.) Federal
a.) Magnuson - Moss Consumer Product
Warranty Act of 1975 - Sets minimum
standards for warranties.
b.) Consumer Product Safety Act of 1972 -
Monitors the safety of products
c.) Etc.

125
4.) Identify Features BenefitsOUTLINE

II.) Consumer Laws Agencies
A.) Federal State
1.) Federal
2.) State
a.) Lemon Laws - protects buyers from
chronically defective merchandise
b.) Arbitration Programs - Encourages
the use of third parties to resolve
differences

126
PRODUCT PRICING

127
OBJECTIVE

Be Able to Define Money Price

128
Money Price

Price
A Specific Measurement of Value

Money
A Measuring Device. It Measures Value

129
OBJECTIVE

Be able to define
Retail Price, Cost, Markup

130
Pricing Terms

Retail Price - The amount of money a
customer pays for a product/service
Cost - The amount of money a business
pays for a product/service
Markup - The amount of money added to
cost to cover a business expenses
desired net profit

131
What is Markup???

Any Business Expense (Besides the Cost of Goods)
Utilities (Heat, Elec., Phone) Donations
Salaries Employee Benefits
Promotions Rent
Taxes Fixtures (Furniture)
Industrial Services (Cleaning) Etc., Etc., Etc.
!!!
Any Desired Net Profit.

132
Abbreviating Pricing Terms

Retail Price RP
Cost C
Markup M

133
Abbreviating Pricing Terms Dollars

Retail Price RP
Cost C
Markup M

134
Abbreviating Pricing TermsPercentages

Retail Price RP
Cost C
Markup M

135
Pricing TermsFormulas

Retail Price Cost Markup

136
Pricing TermsFormulas in Dollars

Retail Price Cost Markup

RP C M
137
Pricing TermsFormulas in Dollars

Retail Price Cost Markup
RP C M

??? 6.00 4.00
138
Pricing TermsFormulas in Dollars

Retail Price Cost Markup
RP C M

10.00 6.00 4.00
139
Pricing TermsFormulas in Percentages

Retail Price Cost Markup
RP C M

140
Pricing TermsFormulas in Percentages
Retail Price ??? What the Heck is Retail Price
141
Pricing Terms Formulas in Percentages
Retail Price 100 ALWAYS!!!
142
Pricing Terms Formulas in Percentages
Retail Price Cost Markup
143
Pricing Terms Formulas in Percentages
Retail Price C M RP C M
144
Pricing Terms Formulas in Percentages
Retail Price C M RP C
M 100 C M
Because RP is Always 100
145
Pricing Terms Formulas in Percentages(Example)
RP C M 100 60 M
Because RP is Always 100
Representing the Cost of Goods
146
Pricing Terms Formulas in Percentages(Example)
100 60 M What Must M Be?
147
Pricing Terms Formulas in Percentages(Example)
100 60 M What Must M Be? M 40
148
Pricing Terms Formulas (Examples)
RP C M RP C M ____
45.00 30.00 100 30 ____ ____
22.00 68.00 100 80 ____ 75.00
____ 10.00 100 ___ 75 10.00
____ 4.00 100 ___ 50
149
Pricing Terms Formulas (Examples)
RP C M RP C M 75.00
45.00 30.00 100 30 70 90.00
22.00 68.00 100 80
20 75.00 65.00 10.00 100 25
75 10.00 6.00 4.00 100 50
50
150
Pricing Terms Formulas
But What if you Have Apples Oranges??? Dollars
Percentages
151
Pricing Terms Formulas
Dollars Percentages RP 25.00 RP
100 C ? C ? M
? M 40
152
WHAT ARE PERCENTAGES?Fractions!!!

What is 1/2 of 100?
What is 1/4 of 100?
What is 3/4 of 100

153
WHAT ARE PERCENTAGES?Fractions!!!

What is 1/2 of 100? 50
What is 1/4 of 100? 25
What is 3/4 of 100 75

154
How Do You Calculate PERCENTAGES?Multiply!!

What is 50 of 10.00? 5.00
What is 25 of 10.00? 2.50
What is 75 of 10.00? 7.50

155
Pricing Terms Formulas
Dollars Percentages RP 25.00 RP
100 C ? C ? M
? M 40
156
How Much is Markup ???

M M X RP

157
How Much is Markup ???

M 40 X 25.00

158
Pricing Terms Formulas
Dollars Percentages RP 25.00 RP
100 C ? C ? M
10.00 M 40
159
Pricing Terms Formulas
Dollars Percentages RP 25.00 RP
100 C 15.00 C ? M
10.00 M 40
160
Pricing Terms Formulas
Dollars Percentages RP 25.00 RP
100 C 15.00 C 60 M
10.00 M 40
161
OBJECTIVE